IIRC, Groupon claims about half of the fee paid, and that's of a fee that is already significantly reduced just to be on Groupon (or on similar services). So yes it really is a money loser for the business, it is basically just to get some customers flowing through, a form of advertising, but if the business is not careful they can get overwhelmed by the response. My wife ran into this with one particular offer -- the provider was just swamped, unable to fulfill all appointments in timely manner, was not doing a great job, and the business's staff got worn out and surly in the process. I don't think she ever got all the services she paid for.thatguy wrote:Keith B wrote:I should clarify my statement; I don't dislike Groupon in and of itself, but many of the companies that utilize their service are either struggling to get business or are not 100% above board in their business practices. I have known of at least companies that advertised their service and then refused to provide the service when requested, stating it was only a 'special time frame' offer and the service would be performed at the businesses discretion when they had openings. Nowhere in the Groupon ad did it state anything about times and availability being restricted.
Kinda where I was going, not so bad for the end user but a money loser for the business.
But we have had a few good experiences - I once stayed in the Hilton Arboretum (I think that's what its called) in Austin for $85/nite or so while I went to a shooting course, and the beat the stuffings out of Super 8. :)
And I love to see gun-training and other gun-related offers on Group-on and its competitors. A lot of them disappeared after Newtown (or Newton?).
One thing my wife figured out -- if you see an offer you like, call the merchant directly and ask them for a deal. If they are willing to cut their price 70% or so (between the advertised price and what they have to pay to Groupon), they are very likely willing cut you a direct deal for 40% or 50%. Especially the smaller businesses, I think. Groupon probably would not like this, may boot the merchant if they find out, but the merchant may be willing to take that chance.